On today’s episode Paige Panzarello joins Holly. Paige has been in the real estate business for over 20 years working various different aspects of the business. Paige has worked as a landlord, as well as working in land development and owning a construction company. While there are several types of notes available to buy Paige works in non-performing notes. Non-performing notes allow for Paige to help people who might not otherwise be able to keep their homes, keep them, while also making a profit for Paige. A recent success story for Paige is one out of Memphis, Tennessee. A borrower had not been able to pay for her mortgage because she was paying for her husband’s medical expenses. The husband recently passed away and the borrower was on the verge of losing the home that she has lived in for over 30 years. Paige was able to help this woman out by buying this note and allowing for the woman to keep her home with repayment and a mortgage adjustment. Paige speaks about FHA 1023, which are specifically designed for banks, like Paige, to work with borrower. They will come in and refinance after 12 months at 97.5% of current market value, which means the borrower, gets to stay in their home and Panzarello gets cash flow. In the end borrower ends up with a manageable mortgage payment and is able to keep their home. When buying notes Paige reminds us that in every 10 notes, one-third of people will perform as expected and be able to keep their home while a profit is being made. Non-performing notes have 23 exit strategies but Paige only utilizes about 4 of them. Paige has preset criteria to determine which notes she wants to get involved in. Paige and her team work out, on paper, every stage of the plan to make sure that they are making money, if they are not making money on paper than the deal is not worth it to them. If you cannot make a profit on paper then the chances of you making profit by buying the note are slim. Paige reminds us that there is plenty of opportunity in note buying, $1.38 billion dollars of bad debt opportunity. To get involved in note buying you need to take the right steps and do your due diligence to make certain you are buying the right notes. While you can go online and signup for a website and buy a note this is not the best way to purchase a note. Paige insists that you do not want to buy a note this way unless you know what you are doing because there are a lot of steps that go into note buying. Unless you know what you are doing you need to hook up with a mentor and develop a relationship with them so that you can benefit from the education and keep yourself out of trouble financially. You need to do your due diligence before you decide to purchase a note to make sure the comp value is where it needs to be and there are no delinquent taxes, etc. Never buy a note without having someone go to the property and have him or her take pictures of the property. You need to make sure that the debt that you just bought is physically there and still standing. Paige likes to say that there are no bad notes but there are bad buying of notes, bad buying will occur if you do not do your due diligence. If you buy badly your profit margin shrink or disappears. Paige finds her deals through relationships. Real estate is a team sport, you cannot do it all yourself. If you do not have good relationships with people on your team you are not going to get very far. Paige funds her deals with her cash, as well as her partner and joint venture partners. Notes are cash and carry unlike conventional loans for homes that you are buying to flip. Paige has become successful by utilizing her stren